JAKARTA (TheInsiderStories) – Lotte Chemical, a large petrochemical producer of South Korea, and other investors have voiced their desire to make new investments in Indonesia, reflecting their optimism on the prospect of Indonesia’s economic future growth.
Former Indonesian Ambassador to South Korea John Prasetyo said there is currently great interest of South Korean businessmen and companies to invest in Indonesia in particular after South Korea’s relation with China is not at its best due to geopolitical issue with North Korea.
A number of large South Korean companies such as Posco and Krakatau Steel have invested in Indonesia. Lotte Chemical is also planning to expand its petrochemical business to Indonesia.
“Lotte Chemical has been in the past two years in talks to buy a land owned by Krakatau Steel in Cilegon and has secured the land in December last year. They (Lotte Chemical) may invest around US$4-5 billion in petrochemical projects,” Prasetyo said, adding that they begin launching the project this year.
He made the comment on the sideline of a South Korean-Indonesian Business Forum held in Jakarta today (March 14), which was officially inaugurated by President Joko Widodo.
President Joko Widodo said South Korea is already the third largest investor in Indonesia. “Korean companies are making very large contribution to our basic industries, such as in steel sector, petrochemical, shoe, garment and others, and employing more than 900,000 Indonesian workers,” the President said.’
The President asked the South Korean business to expand to other areas, such as creative sector of the economy. “I would like to invite you to make new step, by investing in creative and tourism industries.”
The President also offers investment opportunities in in infrastructure such as ports and airport, power plants and others, which are needed by this country to provide strong foundation for the future growth.
“We are in the midst of fourth industrial revolution. Artificial intelligent, robotic, drone technology, self-driving cars and biotechnology. I have no doubt that South Korean companies will play a leading role in this technology revolution,” President Joko Widodo said.
“But there is paradox. I believe that in the edge of automation, when everything is made by robots, I believe consumers will pay a premium for something that is hand made,” he noted, signaling of Indonesia’s strong consumer base for South Korean consumer industries. (*)